Chinese Economics Thread

[zhangjim]

EXACTLY!! but people sometimes have these fantastical and unhealthy, not to mention unrealistic views on what, how, when, where the government actions must be done.

If this is how fragile China is supposed to be based on what our friend @zhangjim has described I wonder how China at its current iteration has managed to arrive at its success and also not collapse many moons ago.

I mean, if am the U.S. I won't even bother interfering in the internal matters of China because the Chinese people like @zhangjim and many like him are more than able/capable on destroying the country. Banking problem? China about to collapse, flood problems China about to collapse; haven't retaken Taiwan? China about to collapse; Crypto investment banned? CHINA about to collapse. With friends like these who needs enemies?

I once said that the scenes depicted by doomsayers will not appear at all!
But people's sense of identity has been weakened by a society full of contradictions.Maybe in the future, those negative disaffected elements will again dominate,let China fall into a long downturn.

The hope of avoiding this bad future is the improvement of the economic and strategic environment.This means a more intense contest with the United States.
At the same time, the internal reform of society is also necessary.The biggest problem at the moment is the government's lack of awareness of the mass psychology influenced by modern media.Those old propaganda and public relations methods must be abandoned.Due to the development of society, the demand is diversified, and rough and unitary management will inevitably lead to all kinds of dissatisfaction.

It is necessary to curb the bottomless Western worship, but how to prevent the elite group from transforming into a pretentious "aristocrat" is still a severe challenge,these people indiscriminately accept "Orientalism", but always think they are smart people.

Due to the influence of imperialist thinking, the United States cannot care more about the problems of the Chinese than the Chinese.When they arrogantly ask us to change our customs, values and even take the initiative to give up resources and territory, the efforts of Americans are doomed to fail.Americans once cleverly used the "shortcut" mentality prevailing in developing countries.However, they have shown too strong racist tendencies towards China, which is intolerable to Chinese people who advocate dignity.

Fortunately, China has always had unswerving people to build this country.But at the same time, don't forget that the contribution to the country is not free. People need the government to return the "reward" they deserve in the future“，this means the completion of the historical mission and the improvement of life and political status.

 

[wxw456]

Look at that absurdly high-interest rate investment (7% for 2 month fixed) from the frozen account banks, the people definitely know these investments are sketchy. Meanwhile zhangjim is still complaining about govt and crying for the investors who want a taxpayer bailout.
Zhangjim logic: we got scammed, so we will scam all of the chinese taxpayers back.

Yicai has been publishing news articles about this for a while now. Here's the latest article:

Please, Log in or Register to view URLs content!

Some of the key points so far:

• Lv Yi's criminal gang compromised four rural banks in Henan.
  • Rural banks are usually privately controlled.
  • SCMP has an article about the challenges and risks facing rural banks.
    • Please, Log in or Register to view URLs content!
    • There are 1,641 rural banks in China.
    • They represent only 12 per cent of the banking system’s total assets.
    • "The high concentration of rural banks’ business in their local areas makes them particularly vulnerable to local economic weaknesses. Their non-performing loan ratios – the ratio of a bank’s bad loans to total loans that measures the rate at which they are not being repaid –has often been significantly higher in rural banks compared with that of their counterparts in urban areas."
    • "It is not uncommon for China’s small rural banks to be hit by bank runs, which are often set off by online speculation due to weak confidence among savers. Their shareholding structures are often opaque, and information disclosures to the public are poor, raising additional concerns about creditworthiness."
    • "The CBIRC began stepping up efforts to regulate small banks following the collapse of Baoshang Bank, a small Inner Mongolia lender that filed for bankruptcy last year – the first bank failure in decades in China. Rural banks are among the small financial institutions that have been subject to tougher regulations."
    • “Some rural banks have become high-risk financial institutions in recent years due to various factors, seriously affecting and limiting their sustainable development and financial service capabilities,” the CBIRC (China Banking and Insurance Regulatory Commission) said in a notice on January 5.
• They then used their influence in the rural banks to attract "depositors" through third-party financial services with interest rates of say 5% per year.
• The group then used this money to create fake loans and high interest loans (loan sharking) and gain influence in urban commercial banks.
• The gang setup a company to delete, block and tamper with data.
• Concerns about the local government:
  • Abuse of the Henan provincial health code system.
  • It is almost certain for groups of local officials to be involved in bribery and evasion of responsibility.

My opinions:

• China is reaching the stage in development where it really needs to start improving financial literacy and education. People need to learn to differentiate between actual deposit schemes, investments and scams. Expecting the government to bail out bad financial decisions just encourages risky investment behaviour.
  • 5-7% annual return is approaching stock market levels of return.
  • You cannot expect that level of return without risk.
  • "Depositors" both naive and greedy are lured in with promises of high returns and no risk.
    • Note that the media constantly uses the term "depositors" instead of "investors". The implication is that the principle amount in the "deposit" accounts is safe.
    • I suspect investigations are taking a long time because the information about assets is totally wrong. The gang set up a technology company and third-party financial company to control and manipulate data. It is very likely the principle amount in the "deposit" accounts are actually gone, partially missing or lent out in a loan.
• The CBIRC only recently started to heavily regulate the over 1,000+ rural banks in China. The regulators at the top likely know about latent issues, but disentangling the many connections at the local level is taking a long time.
  • Goes back to balancing autonomy, regulation and transparency at the local levels of government.

 

[Michaelsinodef]

Yicai has been publishing news articles about this for a while now. Here's the latest article:

Please, Log in or Register to view URLs content!

Some of the key points so far:

• Lv Yi's criminal gang compromised four rural banks in Henan.
  • Rural banks are usually privately controlled.
  • SCMP has an article about the challenges and risks facing rural banks.
    • Please, Log in or Register to view URLs content!
    • There are 1,641 rural banks in China.
    • They represent only 12 per cent of the banking system’s total assets.
    • "The high concentration of rural banks’ business in their local areas makes them particularly vulnerable to local economic weaknesses. Their non-performing loan ratios – the ratio of a bank’s bad loans to total loans that measures the rate at which they are not being repaid –has often been significantly higher in rural banks compared with that of their counterparts in urban areas."
    • "It is not uncommon for China’s small rural banks to be hit by bank runs, which are often set off by online speculation due to weak confidence among savers. Their shareholding structures are often opaque, and information disclosures to the public are poor, raising additional concerns about creditworthiness."
    • "The CBIRC began stepping up efforts to regulate small banks following the collapse of Baoshang Bank, a small Inner Mongolia lender that filed for bankruptcy last year – the first bank failure in decades in China. Rural banks are among the small financial institutions that have been subject to tougher regulations."
    • “Some rural banks have become high-risk financial institutions in recent years due to various factors, seriously affecting and limiting their sustainable development and financial service capabilities,” the CBIRC (China Banking and Insurance Regulatory Commission) said in a notice on January 5.
• They then used their influence in the rural banks to attract "depositors" through third-party financial services with interest rates of say 5% per year.
• The group then used this money to create fake loans and high interest loans (loan sharking) and gain influence in urban commercial banks.
• The gang setup a company to delete, block and tamper with data.
• Concerns about the local government:
  • Abuse of the Henan provincial health code system.
  • It is almost certain for groups of local officials to be involved in bribery and evasion of responsibility.

My opinions:

• China is reaching the stage in development where it really needs to start improving financial literacy and education. People need to learn to differentiate between actual deposit schemes, investments and scams. Expecting the government to bail out bad financial decisions just encourages risky investment behaviour.
  • 5-7% annual return is approaching stock market levels of return.
  • You cannot expect that level of return without risk.
  • "Depositors" both naive and greedy are lured in with promises of high returns and no risk.
    • Note that the media constantly uses the term "depositors" instead of "investors". The implication is that the principle amount in the "deposit" accounts is safe.
    • I suspect investigations are taking a long time because the information about assets is totally wrong. The gang set up a technology company and third-party financial company to control and manipulate data. It is very likely the principle amount in the "deposit" accounts are actually gone, partially missing or lent out in a loan.
• The CBIRC only recently started to heavily regulate the over 1,000+ rural banks in China. The regulators at the top likely know about latent issues, but disentangling the many connections at the local level is taking a long time.
  • Goes back to balancing autonomy, regulation and transparency at the local levels of government.

Great post, seems like Xi is totally right in actually pushing for more centralisation as well as actually probing and investigation the many smaller local authorities and the likes.

Also, like somewhat recently mentioned, it seems like the anti-corruption have worked well in the 'upper levels', but there's still many lower level officials involved in corruption (I think there were like 600k cases of lower level officials getting punished last year?).

 

[zhangjim]

Yicai has been publishing news articles about this for a while now. Here's the latest article:

Please, Log in or Register to view URLs content!

Some of the key points so far:

• Lv Yi's criminal gang compromised four rural banks in Henan.
  • Rural banks are usually privately controlled.
  • SCMP has an article about the challenges and risks facing rural banks.
    • Please, Log in or Register to view URLs content!
    • There are 1,641 rural banks in China.
    • They represent only 12 per cent of the banking system’s total assets.
    • "The high concentration of rural banks’ business in their local areas makes them particularly vulnerable to local economic weaknesses. Their non-performing loan ratios – the ratio of a bank’s bad loans to total loans that measures the rate at which they are not being repaid –has often been significantly higher in rural banks compared with that of their counterparts in urban areas."
    • "It is not uncommon for China’s small rural banks to be hit by bank runs, which are often set off by online speculation due to weak confidence among savers. Their shareholding structures are often opaque, and information disclosures to the public are poor, raising additional concerns about creditworthiness."
    • "The CBIRC began stepping up efforts to regulate small banks following the collapse of Baoshang Bank, a small Inner Mongolia lender that filed for bankruptcy last year – the first bank failure in decades in China. Rural banks are among the small financial institutions that have been subject to tougher regulations."
    • “Some rural banks have become high-risk financial institutions in recent years due to various factors, seriously affecting and limiting their sustainable development and financial service capabilities,” the CBIRC (China Banking and Insurance Regulatory Commission) said in a notice on January 5.
• They then used their influence in the rural banks to attract "depositors" through third-party financial services with interest rates of say 5% per year.
• The group then used this money to create fake loans and high interest loans (loan sharking) and gain influence in urban commercial banks.
• The gang setup a company to delete, block and tamper with data.
• Concerns about the local government:
  • Abuse of the Henan provincial health code system.
  • It is almost certain for groups of local officials to be involved in bribery and evasion of responsibility.

My opinions:

• China is reaching the stage in development where it really needs to start improving financial literacy and education. People need to learn to differentiate between actual deposit schemes, investments and scams. Expecting the government to bail out bad financial decisions just encourages risky investment behaviour.
  • 5-7% annual return is approaching stock market levels of return.
  • You cannot expect that level of return without risk.
  • "Depositors" both naive and greedy are lured in with promises of high returns and no risk.
    • Note that the media constantly uses the term "depositors" instead of "investors". The implication is that the principle amount in the "deposit" accounts is safe.
    • I suspect investigations are taking a long time because the information about assets is totally wrong. The gang set up a technology company and third-party financial company to control and manipulate data. It is very likely the principle amount in the "deposit" accounts are actually gone, partially missing or lent out in a loan.
• The CBIRC only recently started to heavily regulate the over 1,000+ rural banks in China. The regulators at the top likely know about latent issues, but disentangling the many connections at the local level is taking a long time.
  • Goes back to balancing autonomy, regulation and transparency at the local levels of government.

After reading so many replies, I finally saw a satisfactory answer.
It's a pity that my level can't make such a concise summary.
This is not something that a few bold criminals can do. The essence of the matter is the result of out of control supervision since 2014(Allow private capital to invest in rural banks）.

 

[KYli]

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[Coalescence]

Great post, seems like Xi is totally right in actually pushing for more centralisation as well as actually probing and investigation the many smaller local authorities and the likes.

Also, like somewhat recently mentioned, it seems like the anti-corruption have worked well in the 'upper levels', but there's still many lower level officials involved in corruption (I think there were like 600k cases of lower level officials getting punished last year?).

With the new information, I'm starting to suspect that the perpetrators might have decided to cash out of their scam or ponzi scheme just when the CBIRC begun to heavily regulate the rural banks. Expect more events like these to happen in the future, as the central government cracks down and regulate other sectors, especially the real estate sector.

 

[Michaelsinodef]

With the new information, I'm starting to suspect that the perpetrators might have decided to cash out of their scam or ponzi scheme just when the CBIRC begun to heavily regulate the rural banks. Expect more events like these to happen in the future, as the central government cracks down and regulate other sectors, especially the real estate sector.

Yep, seems 'logical', now the question is if the various chinese authorities involved in investigating and the likes can prevent more incidents like this.

Although chances are they probably will be, but it might not be reported or the perpetrators are just gonna end up reported as part of some XXXk number of lower officials caught by the anti-corruption efforts when they do the yearly overview or something like that.

 

[Peas]

With the new information, I'm starting to suspect that the perpetrators might have decided to cash out of their scam or ponzi scheme just when the CBIRC begun to heavily regulate the rural banks. Expect more events like these to happen in the future, as the central government cracks down and regulate other sectors, especially the real estate sector.

So will it bring some benefits after all these rural banks mess over?

 

[Peas]

News report:

Silver protects inspect bureau to henan, henan local financial regulator: silver protects inspect bureau to local financial supervision bureau of henan province, henan announcement (1) according to the case investigation and capital asset recovery situation, through research, the new village Banks of the people's livelihood, ShangCai jin huimin village bank, zhecheng jingxin diamond huanghuai village Banks, kaifeng, new Oriental village Banks off-balance-sheet business customer classification in batches to carry out the first payment of the principal work. The first batch of advance payment will start on July 15, 2022, and the advance payment object is the customer with a single consolidated amount of less than 50,000 yuan (including) for a single institution. For a single organization with a combined amount of more than 50,000 yuan, advance payment will be made in succession, and advance payment will be announced separately. (General Desk reporter Tian Meng)

 

[manqiangrexue]

This is sophistry.It's vicious to make personal attacks and try to question my moral level.
Although this is not a trial, please show evidence, otherwise don't doubt others for no reason.
Don't try to portray me as a opportunist in danger of bankruptcy.Then you want to prove that I'm not trustworthy?

You said your family suffered, so your opinion is personal and biased. You want to talk about public good, but you are the only one complaining. The public here don't agree with you or your eternal bellyaching. So it's not you for the public good; it's you against the public here.

What's vicious is how you turn every thread you go onto into your personal lamenting pit about the Chinese government, even though you have admitted that it is already the best in the world. Whether it is a fight over the ROC or about China's general economic performance, it is off topic and dragged out because of you. You should start a ZhangJim on Period Thread where you can talk to yourself about how the government owes you a perfect retard-proof, risk-proof life and everyone can ignore you to discuss the topics SDF was made for.

If there is a problem, I should say it. I won't hide my point of view.

There is. We're all saying it. You're using a military forum to complain about your personal family crap pushing responsibility on the Chinese government and nobody cares or wants to read about it. Go start a thread, correctly label it, and leave these good threads alone.